Stocks of plastic packaging manufacturers, food shoot up
The share price of packaging and food supply companies skyrocketed by more than 100 per cent because these businesses were left unscathed by the Covid-19 impact.
The shares of Polyplex (Thailand) (PTL), AJ Plast (AJ), Starflex (SFLEX) and R&B Food Supply (RBF) rose by 132 per cent, 170 per cent, 166 per cent, and 283 per cent, respectively.
PTL managing director Amit Prakash said now that the company has started producing polyester plastic beads, it expects sales in Indonesia to rise by up to 16 per cent during the April 1, 2020 to March 31, 2021 period. He added that the production of polyester beads is currently 90 per cent, which should shift to 100 per cent soon.
“PTL has benefited from the pandemic because demand for flexible packaging has risen,” he said.
Meanwhile, SFLEX executives expect the company’s revenue and profits to rise this year, adding that the firm will soon start producing rice bags and sachet to expand its customer base.
“The company’s aims to boost this year’s revenue by 15 to 20 per cent year on year, while it is targeting a 21 to 23 per cent rise in gross profit,” the executives said. “Meanwhile, we aim to raise funds by launching initial public offerings to build a new factory so production can be expanded by another 30 per cent.”
A stock analyst at DBS Vickers Securities said RBF’s revenue in the next two years is expected to increase by approximately 30 per cent per year as the company’s sales continues to rise, and the company has also successfully managed to control costs.
“Projects that will help boost the company’s growth are new breadcrumb factories in Vietnam and Indonesia, the procurement of new machines to boost efficiency and a new factory in Indonesia’s Surabaya.”